Labour/Labor :: Two or More Types : Problems and Solutions
Problem 1
25 Semi-skilled workers @ 7.50 per hour for 50 hours
15 Skilled workers @ 8.25 per hour for 50 hours
The actual labour force employed for producing A is:
28 Semi-skilled workers @ 7.00 per hour for 50 hours.
14 Skilled workers @ 8.50 per hour for 40 hours
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 2
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 3
60 skilled men at 5.00 Paise per hour for 25 hours | 7,500 |
80 semi – skilled men at 3.50 per hour for 40 hours | 11,200 |
18,700 |
75 skilled men at 6.00 per hour for 24 hours | 10,800 |
100 semi – skilled men at 3.40 per hour for 42 hours | 14,280 |
25,080 |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0; LYV/LSUV = ;]
Problem 4
Standard | Actual |
---|---|
Grade A 100 workers @ 12 p.h. | Grade A 122 workers @ 12.50 p.h. |
Grade B 75 workers @ 10 p.h. | Grade B 88 workers @ 9.50 p.h. |
Budgeted hours 80 per worker | Actual Hours 80 per worker |
Standard yield 4,000 units | Actual production 4,100 units |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 5
Standard | Actual | ||||||
---|---|---|---|---|---|---|---|
Labour | No.of persons | Rate | Hours worked | Labour | No. of persons | Rate | Hours worked |
Grade I | 90 | 10 | 100 | Grade I | 85 | 12 | 120 |
Grade II | 55 | 8 | 100 | Grade II | 55 | 7.50 | 120 |
Grade III | 40 | 6 | 100 | Grade III | 50 | 7 | 120 |
Standard rate production:200 units | Actual production:190 units |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 6
Standard | Actual | ||
---|---|---|---|
Number of men employed Output in units Number of working days in a month Average wages per man per month | 80 4,000 25 1,200 | 90 4,180 24 1,140 |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0; LYV/LSUV = ;]
Problem 7
Skilled | 140 | weekly wage | 500 | |
Semi –skilled | 70 | " | " | 450 |
Unskilled | 90 | " | " | 350 |
Skilled | 150 | weekly wage | 515 | |
Semi –skilled | 80 | " | " | 440 |
Unskilled | 70 | " | " | 365 |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 8
Hrs | Rate () | Total () | |
---|---|---|---|
Skilled Workers | 8 | 15 per hour | 120 |
Semi-Skilled Workers | 7 | 12 per hour | 84 |
Unskilled Workers | 5 | 8 per hour | 40 |
244 |
Rate Per hour () | Total () | ||
---|---|---|---|
Articles Produced | 1,000 units | ||
Skilled Workers | 7,800 hrs | 16 | 1,24,800 |
Unskilled Workers | 5,200 hrs | 8.50 | 44,200 |
Semi-Skilled Workers | 7,250 hrs | 13.40 | 97,150 |
2,66,150 |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 and LYV/LSUV = ;]
Problem 9
Category of Worker | Standard No. of Labour | Weekly Wage Rate per laborer | Actual No. of Labor | Weekly Wage Rate per labourer |
Skilled | 70 | 250 | 70 | 260 |
Semi-Skilled | 55 | 225 | 60 | 225 |
Unskilled | 75 | 150 | 80 | 140 |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 10
45 men @ 12 per hour for 50 hours
25 women @ 10 per hour for 40 hours
15 boys @ 8 per hour for 50 hours.
But actual labour force used during that week was:
42 men @ 13 per hour for 55 hours.
20 women @ 11 per hour for 40 hours.
8 women @ 10 per hour for 40 hours.
13 boys @ 8.25 per hour for 60 hours.
You are required to calculate all possible labour/labor variances:
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 11
Total standard Hours | Total standard Cost () | |||
---|---|---|---|---|
40 men | @ 5 per hour for 50hrs | 2,000 | 10,000 | |
25 women | @ 3 per hour for 40 hrs | 1,000 | 3,000 | |
20 boys | @ 2.50 per hour for 25 hrs | 500 | 1,250 | |
3,500 | 14,250 |
Articles produced, 1,000
Total actual Hours | Total Cost () | |||
---|---|---|---|---|
55 men | @ 6 per hour for 50 hrs | 2,750 | 16,500 | |
20 women | @ 2.50 per hour for 30 hrs | 600 | 1,500 | |
10 boys | @ 3 per hour for 15 hrs | 150 | 450 | |
3,500 | 18,450 |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0;LYV/LSUV = ;]
Problem 12
Standard | ||
---|---|---|
For 100 hours | Grade A : 80 workers @ 13 per hour Grade B : 70 workers @ 11 per hour |
Actual | ||
---|---|---|
For 100 hours | Grade A : 78 workers @ 12.50 per hour Grade B : 72 workers @ 10 per hour |
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]
Problem 13
Skilled workers | Semi-skilled workers | Unskilled workers | ||
---|---|---|---|---|
(a) | Standard number of workers in the gang | 28 | 12 | 10 |
(b) | Standard wage rate per hour () | 15 | 12 | 10 |
(c) | Actual number of workers employed in the gang during the week | 25 | 14 | 11 |
(d) | Actual wage rate per hour () | 16 | 12 | 9 |
Calculate the different labour variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 14
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 15
Division B makes highly complex work stations which incorporate material handing, automatic controls and robotics. Manufacture is a team effort and the team specified for work station 26 comprises:
2 supervisors paid 8 per hour
10 fitters paid 6 per hour
6 electricians paid 6 per hour.
2 electronics engineers paid 7 per hour
4 labourers paid 4 per hour
Output is measured in standard hours and 90 standard hours are expected for every 100 clock hours. During a period the following data were recorded.
Actual hours | Actual pay | ||||
---|---|---|---|---|---|
Supervisors | 170 | 1,394 | |||
Fitters | 820 | 4,920 | |||
Electricians | 420 | 2,562 | |||
Electronics engineers | 230 | 1,725 | |||
Labours | 280 | 1,120 | |||
Total |
|
|
The factory director of Division B is anxious to gain the maximum information possible from the standard costing system. He sees no reason why the normal labour efficiency variance could not be divided into sub-variances in order to show separately the effects of non-standard team composition and team productivity in a similar fashion to the material usage variance which can be sub-divided into mix and yield.
You are required to calculate labour variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0;LYV/LSUV = ;]